Major Wins for Real Estate: House Passes “One Big Beautiful Bill Act”
The U.S. House of Representatives has passed the One Big Beautiful Bill Act, a major tax reform package that delivers significant victories for the real estate industry—thanks to the National Association of REALTORS® (NAR) advocacy efforts.
Top Highlights for REALTORS® and Homeowners:
🔹 Bigger Tax Break for Small Businesses
The Qualified Business Income (QBI) deduction jumps from 20% to 23%—a permanent boost for the 90%+ of NAR members who are independent contractors or small business owners.
🔹 SALT Deduction Quadrupled
The State and Local Tax (SALT) deduction cap rises from $10,000 to $40,000 for households earning under $500,000. The cap will increase 1% annually for the next 10 years.
🔹 Mortgage Interest Deduction (MID) Protected
The MID remains intact and permanent, preserving one of the most important tax benefits for current and future homeowners.
🔹 Individual Tax Rates Made Permanent
The lower tax rates from the 2017 Tax Cuts and Jobs Act are now permanent and indexed for inflation—easing affordability concerns for prospective buyers.
🔹 1031 Like-Kind Exchanges & Business SALT Stay Safe
Key tools for property investors remain unchanged, keeping real estate investment strategies strong.
Other REALTOR®-Backed Wins:
✔️ Enhanced Low-Income Housing Tax Credit to boost affordable housing
✔️ Child Investment Accounts for first-time home purchases
✔️ Increased child tax credit through 2028
✔️ $15 million estate tax exemption preserved for generational wealth transfer
✔️ Renewed Opportunity Zone incentives to promote community development
✔️ Business-friendly provisions: bonus depreciation, R&D expensing, and more
Why This Matters:
From middle-class families to real estate investors, these changes offer real financial relief, fuel community investment, and help more Americans achieve homeownership.
The bill now heads to the Senate, where changes may still occur.
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